A community joins the NFIP in two phases: - Emergency Program: the initial phase of the community's participation, when only limited amounts of insurance are available. - Regular Program: the final phase, when a Flood Insurance Rate Map (FIRM) is in effect and full limits are available. The word emergency refers to the community's stage, not to a declared disaster.

Program dollar limits are set in regulation (44 CFR §61.6). For a single-family dwelling in California, building coverage is up to $35,000 in the Emergency Program and up to $250,000 in the Regular Program. In the Regular Program, contents can be bought separately, up to $100,000.

Mandatory purchase: when a building in a special flood hazard area (SFHA) secures a loan from a federally regulated lender, federal law requires flood coverage at least equal to the outstanding loan balance or the maximum available under the program, whichever is less. Example: a $400,000 loan on a single-family home in a Regular Program community needs at least $250,000 of building coverage. Lenders may require more than the federal minimum.

Forced placement: if the lender notifies the borrower that coverage is missing and the borrower fails to buy it within 45 days after notice, the lender or servicer must buy it on the borrower's behalf and may charge the borrower for the premiums and fees. The duty lasts for the term of the loan. A property outside the SFHA is not subject to this federal mandate.